Market News

Limuru Tea profit drops on lower produce

A worker picks tea in Kericho. File photo | nmg
A worker picks tea in Kericho. File photo | nmg 

Limuru Tea Company reported a loss of Sh4.5 million in the six months to June as drought took a toll on tea volumes.

The company had reported a net profit of Sh4.37 million in the corresponding period in 2016. Total revenue decreased by 43 per cent to Sh34 million in the period compared to Sh59 million realised in the same period last year.

“This decrease in the first half of 2017 was due to a drop in production volumes as a result of unfavourable weather conditions experienced in the first quarter,” said company chairman Richard Korir in regulatory filings.

During the period, the company produced 926 tons of green leaf, which in turn was manufactured into 216 tons of black tea.

This was a 45 per cent decrease in made tea volumes compared to the first half of 2016.

The firm’s directors did not recommend an interim dividend.  Mr Korir projected that if the current weather conditions persist for the rest of the year, the full year crop is expected to be lower than last year.